Abstract
The study empirically estimates the relative technical efficiency of Nigeria upstream petroleum industries and its determinants using non-parametric and parametric analysis. The non-parametric anal...
Highlights
Petroleum upstream industry worldwide can be described as a technically oriented sector due to sub-surface complexities (Zhenhua et al, 2018)
One of the major challenges faced by petroleumproducing countries today is how to reliably know the technical performance (TP) of the industry’s operators and its determinants for effective policy formulation
We extended the time interval of the previous studies and divided the 32 active Nigeria operators into six groups based on contracts, namely,joint venture contract operators (JVCO), production sharing contract operators (PSCO), service contract operator (SCO), sole risk contract operators (SRCO), marginal field contract operators (MFCO) and national oil companies (NOCs)
Summary
One of the major challenges faced by petroleumproducing countries today is how to reliably know the technical performance (TP) of the industry’s operators and its determinants for effective policy formulation. The study engaged non-parametric analytics approach (NAA) to estimate upstream TP and parametric analysis approach (PAA) to identify its determinants in Nigeria upstream environment. NAA results reveal that joint venture contractors, marginal field contractors, sole risk contractors, production sharing contractors, service contract operatorand national oil company recorded the following TP grades, respectively: 75%, 67%, 65%, 64%, 42% and 23%. PAA results indicate that four of the selected independent variables are statistically significant determinants of Nigeria upstream TP. Our findings support the plan exit of cash calls policy and confirm that the proposed exit is not harmful to both parties. Subjects: Production Engineering; Manufacturing Engineering; Operations Research
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